Shares of several major banks tanked on Friday—even after reporting solid quarterly earnings—as reports underwhelmed investors and some firms warned about rising expenses and “inflationary pressures” which could impact future profits.
Shares of JPMorgan Chase, the largest U.S. bank by assets, lost more than 5% on Friday despite beating profit and revenue estimates.
It was the bank’s smallest earnings beat in the last seven quarters, and JPMorgan’s CFO lowered guidance on company wide returns, citing “headwinds” including “inflationary pressures.”
Shares of Citigroup similarly fell over 2% after reporting solid revenue and profit numbers, as investors were particularly alarmed by the bank’s steep drop in profits.
The company’s net income fell 26% in the fourth quarter, with Citigroup blaming rising expenses for the sharp decline.
The only major bank to report earnings and buck the trend on Friday was